Question 65

₹4,300 becomes ₹4,644 in 2 years at simple interest. Find the principle amount that will become ₹10,104 in 5 years at the same rate of interest.

Solution

Interest = 4644 - 4300 = 344

p = 4300

T = 2 years

Simple interest = $$\frac{prt}{100}$$

344 = $$\frac{4300 \times r \times 2}{100}$$

r = 4%

Let the principle amount be x.

So, interest = 10104 - x

T = 5 years

r = 4%

Simple interest = $$\frac{prt}{100}$$

10104 - x = $$\frac{x \times 4 \times 5}{100}$$

10104 $$\times 5$$ - 5x = x

6x = 50520

x = 8420

$$\therefore$$ The principle amount is Rs. 8420.

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